Rightmove said 2009 figures - to be unveiled on February 26 - would be in line with current forecasts but trading in January saw "a substantial increase in average spend per advertiser." This was due to customers spending more on existing advertising products, increases in agency listing fees, and a healthy uptake of new display advertising products launched in December. As a consequence, the company said:

The board is confident 2010 profits will be above current market expectations, subject to no significant change in market conditions.

The news has pushed the company's shares 28p higher to 553p, making it the biggest riser in the mid-cap index. Analyst Robin Savage at Collins Stewart said:

It is unusual for management to warn the market 13 trading days before its 2009 results presentation that market forecasts for the next year are too low. Rightmove is unusual.

Rightmove's subscription business model generates predictable sales and profits. Visibility for management is exceptionally high. We suspect that the number of property developments has increased and that estate agents are (reluctantly) paying up for Rightmove Choice products.

We will review our 2010 and 2011 forecasts in light of comments made at the Rightmove results meeting. We expect to upgrade but will await the evidence on which our upgrade will be based, before quantifying the rise. We recommend investors look at the big picture. Rightmove is the beneficiary of the cyclical and secular rise of on-line property advertising. We maintain our positive recommendation.

In a hold note Investec said:

It is difficult for us to give a definitive magnitude of expected upgrades given the lack of detail in the statement, but we would expect consensus earnings per share to rise to at least 32p from 29p currently.

Meanwhile at the company's joint broker Numis, Lorna Tilbian said:

We believe today's update reflects both Rightmove's strong market position, value proposition as a property marketing tool and subscription business model. Our target price is raised from 703p to 730p and we retain our buy recommendation.

Rightmove's shares came under pressure not so long ago on fears that the mighty Google could move into the online estate agency market. Subsequently, however, Rightmove did a deal with the search engine business, with Google agreeing to supply all maps for displaying properties on Rightmove. Some optimistic traders suggested the move could even lead to a bid from Google for the company at some point.